Correct option is D
The correct answer is
(d) (A) & (R) both are true and (R) is the correct explanation of (A).
Explanation:
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Assertion (A) is true: An invitation to make tenders (also known as an invitation to treat) is not considered an offer. It is merely an invitation to others to submit offers or bids. The person who invites tenders is not making an offer themselves but is inviting others to make offers.
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Reason (R) is true: A tender submitted in response to an invitation to tender is considered an offer. When a party submits a tender, they are making an offer, which the inviting party can then accept or reject.
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Correct Explanation: The Reason (R) correctly explains the Assertion (A) because the process starts with an invitation to treat (which is not an offer), and the actual offer comes from the tenders submitted in response to that invitation.
Information Booster:
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Invitation to Treat vs. Offer: An invitation to treat is a preliminary communication indicating a willingness to negotiate or receive offers. Examples include advertisements, auction listings, or invitations to tender. It is not legally binding as an offer. An offer, on the other hand, is a definitive proposal made with the intention of being bound by it once accepted by the offeree.
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Tenders: In legal terms, a tender is an offer to perform an act or provide a service, usually in response to an invitation from another party. The submission of a tender is considered a legal offer, which the inviting party can choose to accept, leading to a binding contract.
Additional Knowledge:
1.
Invitation to Treat: Common examples of invitations to treat include displaying goods for sale in a store or advertising services. These actions invite others to make offers, but they do not constitute an offer themselves. The seller or service provider can then choose whether to accept any resulting offers.
2.
Contracts Formation: A contract is formed when an offer is made by one party and accepted by another. The invitation to tender is not part of the contract formation process until a tender (offer) is accepted by the inviting party.
3.
Legal Significance of Tenders: Tenders are important in procurement and construction contracts, where multiple parties may be invited to submit their offers, and the most suitable or competitive offer is accepted. This process ensures transparency and fairness in large-scale projects.
4.
Revocation of Offers: A tender, like any other offer, can be revoked before acceptance. However, once accepted, it becomes a binding contract, and both parties are legally obligated to fulfill their respective duties.
